What Are Bad Credit Loans from Direct Lenders?
People who have a credit report that isn't perfect or has little to no credit history are eligible for bad credit loans. These loans include higher interest rates and limitations than ordinary loans to assist lenders in lessening the chance of you not repaying them. They can, however, be beneficial if used carefully.
Importantly, organizations will not advertise 'poor credit loans,' as this is only a common term.
Understanding Credit Scores in the UK
Our lending partners offer loans ranging from £100 to £5000, repayable over 3 to 48 months, depending on the amount borrowed.
Loans for people with terrible credit come with various terms that vary depending on how much you want to borrow.
Our lending partners fund loans every hour, 24 hours a day, seven days a week. These lenders can provide same-day loans for those with adverse credit, allowing you to acquire the money you need right now.
It's also a lot easier to stay on top of things because your payments are spread out over several months. Many of these lenders also don't charge late fees or additional interest.
What Can Lead to A Bad Credit Score?
Late Loan Repayments
Missing a payment might hurt your credit score because on-time payments are the most critical element affecting your credit score. If you have otherwise perfect credit, a more than 30 days late payment might lower your credit ratings by as much as 100 points.
Filing for Bankruptcy
Bankruptcy might result in a significant decline in your credit score. If a lender accepts your credit application despite your poor credit score, it will almost certainly be in less favorable conditions.
If you have ever skipped a payment on a loan, credit card, utility, or even your mortgage, it'll almost certainly affect your credit score in the future. Missing payments in any form suggest to lenders that you may be prone to missing payments in the future, putting them at risk.
Home or Vehicle Repossession
If you have ever had your home or vehicle repossessed, it will affect your credit score badly. If you miss too many mortgage payments or fail on a logbook loan, your property or vehicle gets repossessed.
Will All Direct Lenders in the UK Accept Bad Credit?
You can get a bad credit loan from either a broker or a direct lender. However, many people prefer to get a bad credit loan from a direct lender because they want to be sure that their personal information is kept secure and want to know who they are getting credit from.
UK Bad Credit Loans is a platform that helps borrowers connect with every possible lender providing a loan they desire (as in this case, a bad credit loan).
Looking to Borrow Money Easily?
Representative Example: Rates from 43.1% APR to 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £1,200 borrowed for up to 75 days. Total amount repayable is: £1506. Interest charged is 0.34% per day, amounting to £306, annual interest rate of 124% (variable). Representative APR: 49.7% (variable).
How to Improve Your Very Bad Credit Score?
Pay off Your Bills On-time
Payment history has the most significant impact on your credit score, and that is why it is better to pay off your dues and bills on time. This will help boost your credit ratings.
Avoid Late or Missed Repayments
As mentioned above, missing a single payment can cause your credit rating to drop significantly. Therefore, plan your finances in advance, keeping a buffer fund for an emergency in order to avoid missing any repayment on a loan.
Reducing the Balance On Outstanding Credit
You can reduce the balance on outstanding loans, meaning the interest is payable on the due loan amount after a few periodic installments are paid. This is a great way to reduce interest charges paid on loans and improve credit scores.
Benefits of Getting Very Bad Credit Loans from Direct Lender
Direct lenders' offers and prices hosted on our platform are generally fair and responsible. Most of them charge only to cover the cost of delivering the service to the local community.
Flexible Repayment Schedule
Some lenders offer their customers a flexible repayment schedule best suited to their needs and finances. It means that you can repay weekly, fortnightly, or monthly, whichever is more convenient for you.
Budgeting Advice and Assistance
We will provide you with helpful guidance and recommendations on how to handle your money more effectively both during and after the application process. We may also refer you to organizations that specialize in financial assistance.
No Continuous Payment
Our lending partners don't process your payments via Continuous Payment Authority (CPA). All loan repayments are made by direct debit, giving you peace of mind and avoiding any unpleasant surprises. You will always know how much and when the next payment is due.
Potential Disadvantages of Very Bad Credit Loans from Direct Lender
Higher Interest Rates
People with a poor credit history are more likely to be offered loans with higher interest rates. The overall cost of borrowing will increase as the interest rate rises.
As the interest rates are higher, borrowers face a constantly looming fear of missing out on repayments. This is because sticking to a schedule is important; otherwise, your credit ratings may get affected.
UKBadCreditLoans is a platform that hosts responsible and legitimate lenders offering loans even to those having o poor credit ratings. Some very bad credit loan lenders on UKBadCreditLoans also provide flexible repayment schedules suitable to your financial obligations. No worries if you have a not-so-perfect credit history, our lending partners may still provide a loan to you.